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mewl 5
52A05SE2004 2.18412 GILLIES 010
REPORT ON
1997 EXPLORATION WORK
ELGIN LAKE MINES LIMITED
LOT T200
(BADGER MINE PROPERTY)
GILLIES TOWNSHIP
THUNDER BAY MINING DIVISION
ONTARIO
2 . 184 12
prepared by:
Redden, B.Se. Jonsulting Geologist
Box 117Wabigoon, ONPOV 2WOtel/fax (807) 938-6915
Mar. 18, 1998
52A05SE2004 2.18412 GILLIES OIOC
Table of Contents
Item page
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l
Property Holdings . . . . . . . . . . . .. . .. . . . . . . . . . . . . . l
Location and Access . . . . . . . . . . . . . . . . . . . . . . . . . . . l
Previous Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l
General Geology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Economic Geology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1997 Exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Recommendations ...... . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Figures
Fig. l Location Map .. . . . . . . . . . . . . . . . . . . . . . . . . . 5
Fig. 2 Sketch Map, Lot T20G, Gillies Twp ....... 6
Introduction
The Rabbit Mountain Area has been the scene of exploration since the first silver discovery in 1882. During the 1880's many properties were explored and several were brought into production. The Badger Mine was discovered in 1885. A pocket of high-grade silver ore, assaying up to 19,000 ounces of silver per ton was immediately encountered. The property was developed and mined by a shaft, three levels and winzes. Production was reported to be about $250,000. With a general drop in silver prices in 1891 all the area mines closed including the Badger. Since that time sporadic exploration has been carried out from time to time.
Based on the previous results and recent activity in the area, some geological reconnaissance work was done on T200 in 1997. This report presents the results.
Property Holdings
Mining Lot T200 (leased claims TB 106009 - TB 106014) covers most of the previous workings of the Badger Mine. The shaft lies 50' (15m) south of the north boundary of T200. Leased claims TB 130310 and TB 133084 are also included in the property.
The property is held by Elgin Lake Mines Ltd. P. K. Mcwilliams, is president. Cairngorm Mines Ltd., of which Mr. Mcwilliams is also the president owns the contiguous property to the northeast.
Location and Access
Highway 588 crosses to the northwest, about 30 km west southwest of Thunder Bay, Ontario. A concession road crosses the south part of the property. A dirt road crosses private land from Hwy 588, through lots T96, T95 and T201 to within a hundred meters of the Badger shaft.
Previous Work
The Badger Mine was discovered in 1885. A pocket of high-grade silver ore, assaying up to 19,000 ounces of silver per ton was immediately encountered. The property was developed and mined by a shaft, three levels and winzes. Production was reported to be about S25G,000. With the drop in silver prices in 1891, the Badger and all the area mines closed. Since that time sporadic exploration has been carried out from time to time.
In the 1930's Animikie Mines Limited, siphoned the water level down from the shaft collar for about 20'. A photo taken at this time showing high grade native silver and argentite samples labelled 'Badger Mine' confirms the high grade reported to have been encountered during mining.
J. W. Redden - Geologist page l
A verbal report to this author from one of the crew who worked on the siphoning also confirmed the presence of high grade based on the comments made by the site engineer during the work. The company was not able to raise funds during the depression and no further work was done. This is the only effort to re-examine the underground since 1891.
In the late 1960's Elgin Lake Mines Limited drilled five holes in the Badger vein and to the southwest of the Badger shaft. Veins were intersected in all holes. Two previously undocumented adits on the west slope of the hill west from the Badger shaft were also located. Argentite was noted in the dumps.
Minor prospecting, stripping, drilling and sampling was done in the 1970's by Elgin Lake Mines.
In 1995 an attempt to open the northwest adit was started. After excavating 30m from the caved entrance, excessive overburden thickness (10m) prevented further work.
General Geology
The regional geology consists of 300 to 400' of black, pyritic, graphitic shale. The shale has been cut by late Precambrian diabasic intrusions, principally sills or near-conformable dykes. Due to erosion, the diabase forms a cap up to 20-30m on hills in the area. The sediments have a regional dip of 3 to 5 degrees to the south.
The shale and diabase have been affected by faulting. Major fault directions are ENE to NE and NNW. The faulting has both vertical and horizontal components. Vertical displacements of 3 to 10m are most common, though displacements of 30m and more have been recorded in the area. The horizontal component is unknown. All observed faults on the property dip steeply. Most of these faults have been filled by vein minerals.
Economic Geology
All rock types in the area have been cut by vertical or near-vertical faults. The faults have been filled by veins containing quartz (glassy, white, amethystine), calcite (clear, white) with lesser fluorite (green, purple) and occasionally barite (white, translucent). Metallic minerals present in the veins include pyrite, marcasite, sphalerite, galena and occasionally chalcopyrite. Vugs lined with crystals are not uncommon. Cockade texture and mineral banding are also common.
The veins are generally brecciated zones containing assorted angular fragments of the black shale or diabase. Often, solid veins up to 0.5 m wide are present within the breccia.
J. W. Redden - Geologist page 2
The silver is present as films, leaves or nuggets in the form of the silver sulphide, acanthite (locally termed argentite) or less commonly as wire or dendritic native silver.
Silver values tend to occur very erratically within the veins and occasionally in fractures within the wallrock. The more significant silver values tended to be found where the veins are enclosed within the black shale and within 30 to 60 m of the overlying diabase.
1997 Exploration
Methodology
Based on previous work in the area, selected portions of the property were examined in 1997. One traverse was made tied into topography and known locations. The objective was to examine areas previously identified or suspected to contain veining which could be opened by stripping or trenching. Only one traverse was made due to other priorities which arose.
Fig. 2 accompanying this report summarizes the data compiled.
Results
Two separate areas have been identified for particular additionalattention on the property:
The Badger Mine and surrounding area from the north boundary of T200 to about 300m to the sourh and extending east and westerly to beyond the base of the slopes of the hill warrants intensive exploration. This area includes the workings of the Badger Mine, the westerly projection of the Badger vein and the east trending valley which is known to contain veining. This area is enclosed by claims TB 106009 and TB 106014.
The known veining in this area has not yet been satisfactorily interpreted to establish vein continuity.
The second area meriting attention is the east-west trending valley crossing the hill near the middle of lot T200. Veining has not been discovered however the valley is covered with overburden. Further work is expected to expose the veining.
Note that the original Badger Mine Property contained 200 acres. This consisted of lot T201 (96 acres) and the north part of T200 (104 acres). Claims TB 106009 and TB 106014 constitute the original north part of lot T200.
J. W. Redden - Geologist page 3
Conclusions
1. An exploration program is warranted to cover the central part of lot T200.
2. Dewatering the Badger Mine and examining the underground workings is warranted.
Recommendations
1. Dewater the Badger Mine and examine the underground workings.
a. acquire permitsb. acquire permissionsd. arrange for contractorc. prepare access to shaft collare. emphasize safety
2. Conduct an exploration program on the central part of lot T200 (only on the high hill and slopes):
a. establish a north-south grid with 25m spacing intervals for the northern 300 meters of the property
b. extend the grid at 50m to 100m intervals southerly to the property boundary
c. conduct detailed geological surveyd. conduct detailed fluxgate magnetic survey (1m
intervals)e. where warranted conduct geochemical survey along
and downward the east and west slopes of the hill (nominal 100m intervals, tighter where warranted)
f. strip and trench targets
3. Evaluate the results and extend the work if warranted.
J. W. Redden - Geologist paae 4
Fig. l
RABBIT MOUNTAIN AREA
Location Map
Gillies, O'connor, Paipoonge and Scoble Townships
scale 1:31,680
1km
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Ministry of
52A05SE2004 2.18412 GILLIES
Declaration of Assessment Work Performed on Mining LandMining Act, Subsection 65(2) and 66(3), R.S.O. 1990
•J air si vOiX|f"0'3;"rtTr Number (office us*)
ircti Imaging
)f subjections 65(2) and 66(3) of the Mining Act. Under section 8 of the review the assessment work and correspond with the mining land holder. Recorder, Ministry of Northern Development and Mines, 6th Floor,
900 2 . 184 l 2Instructions: - For work perforrned on Crown Lands before recording a claim, use form 0240.
- Please type or print in ink.
1. Recorded holder(s) (Attach a list if necessary)Name /W ** Client Number
Ter/ T// 06
"3 J r-* S .6
Address Telephone Number(go?) 138~t J/'3
Fax Number
Name Client Number
APR O 2 IS4V4Z-
Fax Number
2. Type of work performed: Check ( *- ) and report on only ONE of the following groups for this declaration.
'Geotechnical: prospecting, surveys, assays and work under section 18 (regs)
Physical: drilling, stripping, trenching and associated assays | [ Rehabilitation
Work Type
Dates Work — Performed From 2 7
DayGlobal Positioning System Data (if
7?- WX-*4r 'ty To z.o /2- '^#V| Month j Year Day Month Yearavailable) Township/Area
M or G-Plan Number
C5f" ^ 5" "7
Office UseCommodity
Total S Value of /Work Claimed .5X^7'**
NTS Reference
Mining Division •*jl t Q
Resident Geologist/i /^) District IhjirtJn) XA^
Plgase rernejT|ber tp; -^qptajn a work permit from the Ministry of Natural Resources as require'roper notice to surface rights holders before starting work;and attach a Statement of Costs, form 0212;map showing contiguous mining lands that are linked for ass gning work;
APR O 2 19S8- provide s
APR - 2 t938luc*e ll 'o coP'es of Vour technical report.
RECEIVED
3. Person or companies who prepared the technical report (Attach a list if necessary)
iEOSCIENCE ASSESSMENT _____OFFICE
Certification by Recorded Holder or AgentGEOSCIENCfcASSbSSMbNI
.OFFICE;LJBiaUllcll
(Print Name), do hereby certify tr tri-trs Ktiuwltsd^yi of the facts set
rth in this Declaration of Assessment Work having caused the work to be perforrned or wttpeesed the same during after its completion and, to the best of my knowledge, the annexed report is true, i .v ' ; '
gent's Address
777, r~7-l Telephone Number3tf*7jrys~t
(7///// s / /#^Fax Number
5. Work to be recorded and distributed, the mining land where work was performed, must accompany this form. i l
-, ^ . TT.__*-. . .....~.-. t.-.-.-..- . -—^ s a tffA
Work can only be assigned to claims that are contiguous (adjoining) to at the Ume work was performed. A majj. showing the contiguous lirtk * "*
-. . —,,-... — - — ~- '-•~-~'- . ...i-'1 •̂'\f\-mUf^rfrVfV-fmfiltXyllf'~~' '''' ''••""J , ,-V" '; '"- '- r~-:.l-'-nj~ -'i - - *' '': f
Mining Claim Number. Or tf work was dona on other eligible mining land, show In this column th^locatlon number indicateron the claim map.
eg
eg
eg
rf3l2
3
4
5
6
7
8
9
10
11
12
13
14
15
TB 7827
Number of Claim l Units. For other mining land, list hectares.
16 ha
1234567 , . L 12^t l 'f*) B , -.-*
^' f234568 ' f 2
•fZoo f^/a.
Column Totals
performed on this dalm or other mining land.
2 *^r e S26, 825
0
S 8, 892
5 s-o
SSo
Value of work applied to this claim.
184 1N/A
S24,000
S 4,000
550
' i ~*
J ~ - 1
t - :
"— — - ————~. . , .
s so
Value of work assigned to other mining claims.
J^fr i
0
0
-^~
•"'; -' :--' -. i
w *
;..,/ j~-'-:lt: L...' .. ^..
-
-d-
Bank. Value of work to be distributed at a future date.
S2.825
0
S4,892
55*
Sso
;v
l, , do hereby certify that the above work credits are eligible under(Print Full Name)
subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to
the claim where the work was done. r . - ' •••" ";Signature of Recorded Holder or Agept Authorized in Writing Dale
6. ^Instructions for cutting back credits that are not approved.
Some of the credits claimed in this declaration may be cut back. Please check ( ^ ) in the boxes below to show how
you wish to prioritize the deletion of credits:
d 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated,
n 2. Credits are to be cut back starling with the claims listed last, working backwards; or
Q 3. Credits are to be cut back equally over all claims listed in this declaration; or
d 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe):
Note: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first, followed by option number 2 if necessary.
For Office Use OnlyReceived Stamp
0241 (02/96)
RECORDEDAPR - 1 1998
Deemed Approved Date
Date Approved
Date Notification Sent
Total Value of Credit Approved
Approved lor Recording by Mining Recorder (Signature)
Ontario Ministry ofNorthern Developmentand Mines Statement of Costs for Assessment CreditTransaction Number (office use)
Personal Information collected on thla form la obtained under the authority of eubaectton 6(1) of the Assessment Work Regulation 6/96. Under section 8 of the Mining Act. the Information la a public record. Thla Information wiN be uaed to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to the Chief Mining Recorder. Mnistry of .Northern Development and Mines. 6th Floor. 933 Ramsey Lake Road. Sudbury. Ontario. P3E 685. ^ J O A -j ^\
Work TypeUnits of Work
Depending on the type of work, list the number of hours/days worked, metres of drilling, kilo metre* of grid line, number of samples, etc.
Cost Per Unit Total Cost
r, y350"
n f"/ 2.0 o
Associated Costs (e.g. supplies, mobilization and demobilization).
Transportation Costs
Food and Lodging Costs
RECORDED,;APR - 2 1998
Calculations of Filing Discount
l Value of Assessment Work
1. Work filed within two years of performance is claimed at 100(M) of the above Total Value of Assessment Work.2. If work is filed after two years and up to five years after performance, it can only be claimed at SO'to of the Total
Value of Assessment Work. If this situation applies to your claims, use the calculation below:TOTAL VALUE OF ASSESSMENT WORK x 0.50 - Total S value of worked claimed.
Note:- Work older than 5 years is not eligible for credit.- A recorded holder may be required to verify expenditures claimed in this statement of costs within 45 days of a request for verification and/or correction/clarification. If verification and/or correction/clarification is not made, the Minister may reject a!l or part of the assessment work submitted.
Certification verifying costs:
l, ^ do hereby certjfyi tnat tne amounts shown are as accurate as may(please pxint full name)
reasonably be determined and the costs were incurred while conducting assessment work on the lands indicated on
the accompanying Declaration of Work form as
to make this certification.(recorded holder, (gent, or (Ule company position with ilgnlng authority)
l am authorized
Date
OntarioMinistry of Mlnistere duNorthern Development Developpement du Nordand Mines et des MinesGeoscience Assessment Office 933 Ramsey Lake Road
June 22, 1998 6th FloorSudbury, Ontario
PETER KIMBER MCWILLIAMS P3E 6B5 264 MAIN STREETMILTON, ONTARIO Telephone: (888)415-9846 L9T-1P2 Fax: (705)670-5881
Visit our website at: www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm
Dear Sir or Madam: S ubmission Number: 2 .18412
Status Subject: Transaction Number(s): W9840.00396 Approval
We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.
If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.
Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.
If you have any questions regarding this correspondence, please contact Steve Beneteau by e-mail at [email protected] or by telephone at (705) 670-5855.
Yours sincerely,
ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section
Correspondence ID: 12456
Copy for: Assessment Library
Work Report Assessment Results
Submission Number: 2 .18412
Date Correspondence Sent: June 22, 1998 AssessonSteve Beneteau
Transaction Number
W9840.00396
Section:
12 Geological GEOL
First Claim Number
T200
Township(s) l Area(s)
GILLIES
Status
Approval
Approval Date
June 19, 1998
Correspondence to:Resident Geologist Thunder Bay, ON
Assessment Files Library Sudbury, ON
Recorded Holder(s) and/or Agent(s):PETER KIMBER MCWILLIAMS MILTON, ONTARIO
JAMES WILLIAM REDDEN WABIGOON, Ontario
Page: 1Correspondence ID: 12456
\
•ffl'F E R fe N C E SAREAS ̂ WITHDRAWN FROM BlSPOSfTfOff——
M.R.O. -MINING RIGHT* CNLV
S.R.O. - SURFACE RIGHTS ONLY
M.+ t. - MINING AND SURFACE RIGHTS "
DMarlnUn Onter No. O*** n^indUun Fh
®MMM MNHTt WTOWIAWH FROM STMWt OMXft NO, W-TS-TSrt4JHWDATED •/oa'M.TO PMVtKT ADVWH ALBWTWN VMUB WHITE* COlSlDoBr wfilLMSrT OF COnVKAtt OF IfWMATKW.
S. 'i ' 1 - -'
THE INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES AND ACCURACY IS NOT GUARANTEED. THOSE WISHING TO STAKE MIN- . ING CLAIMS SHOULD CON SULT WITH THE MINING RECORDER, MINISTRY OF NORTHERN DEVELOP MENT AND MINES, FOR AD DITIONAL INFORMATION ON THE STATUS OF THE LANDS SHOWN H^REON,
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LEGEND———— . . —— p —vi' WAY ANL- OOU Tf No OTHER ROADS
TRA LS SURVEYED LINES:
TOWNSHIPS, BASE LINES. LOTS, MINING CI .AIMS. F*
UNSURVEYED LINES: LOT LINES PAPCEL BOUNDARY MINING CLAIMS ETC.
f.AILWAYAND ^GHTOFWi UTIL.TY LINES NON PEf ENNIAL STREAM FLOODING OR F LOOPING 51 SUBDIVISION OR COMPOS!, RESERVATIONS ORIGINAL SHORELINE MARSH OR MUSKEG MINES TRAVERSE MONUMENT
w/ 'ttiNt-—
ETC -" -- iRCELS. 67^. ——— ————— "
1
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4
DISPOSITION OF r.RQWN LANDS i^YPE O F DOCUMENT SYNUOlPATENT. SURFACE 8. MININC
.SURFACE RIGHTS C
.MINING RIGHTS ~)V
LEASE, SURFACE ft MINING " .SURFACE RIGHTS ON
" .MINING RIGHTS ONL LICENCE OF OCCUPATION ..ORDER-IN-COUNCtl .......RESERVATION __ .
i RIGHTS ....., ,,.........®0NLY __ . ®LY^ __ .. "Q
EIGHTS ___ . __ _ ..^J© P LY ____ . . . . Cf y
OT(f.. |
CANCELLER ,.^..,,...m . *:
SAND8.GRAVEL .......... ... ". ... , 'VLAND USE PERMITS FOR COMMERCIAL TQURISM.OUTPOST CJOtfS V
NOTE: MINUJQ H'GHfS ,N PABCf : '. - ATEMTf ;. . K OH .0 M T t,ivi3. vtsifc: IN OBIG:;.A': p..Ttr "f av Tt e ci .1 icLANDS ACT R.S.O. 19'0. CHJtr 3*1. SeC. FA. Sl'^? .C 1.
SCALE: 1 INCH - 40 CHAI
FEET O tOOO 7tX. j M
NS ( i
i.HW (.ax) aooo
-T————— ~-
0 JOO 1OOO METRES l* XM)
JOOO'2 K M)
GILLIES TWP.i
M. N. R. ADMINISTRATIVE DISTRICT
THUNDER BAYMINING niVISIOtt
THUNDER BAY!
LAND TITLES/ REGISTRY DIVISION
THUNDER BAY
/JT"X Minbtry ofl U^J Ndtjral vAclx Resourcesa -tarto (fat&At J f,
#0 "* 'JULY, 1986
' ,t* .
Ministry cf^orthem Development and Mines
G-657